28. The new SR 2000 PSA target 2 brigades together
three targets, including the welcome one of "more enterprise
in disadvantaged communities", arising from the November
1999 PAT 3 Report on which we reported to the House in March 2000.[40]
The SDA sets out four performance measures 

(i) increase in
usage of SBS information services including its website, and achieving
80% customer satisfaction:
(ii) increase in productivity and profitability of
businesses using SBS business support services:
(iii) increase accessibility of business support to
identified under-represented communities:
(iv) increase the number of successful high-growth
business start-ups.

29. These generally repeat the 1998 PSA Targets 3
and 4, adding on a reference to the new target on enterprise in
disadvantaged communities. We were therefore surprised to see
in the December 2000 Technical Notes no reference to performance
measurements (i) (ii) and (iv). The Notes refer back to the SR
2000 targets, dealing with issues such as how to measure the number
of individuals "considering" going into business and
the overall productivity of small firms, as well as the desired
increase in enterprise in disadvantaged communities. We also note
that the target date for an improvement in the overall productivity
of small firms is 2010, "due to it taking some time before
being able to assess fully the impact of the Small Business Service
upon small firms." The set of "enterprise society"
objectives, targets and measurements is a dog's breakfast. We
recommend that the department and the Treasury revise the details
of this objective.

1998 PSA target 8  To make the UK the best place in the world to trade electronically by 2002.

SR 2000 PSA target 3  Make and keep the UK the best place in the world to trade electronically, as measured by the cost of Internet access and the extent of business to business and business to consumer transactions carried out over e-commerce networks.

31. The new SR 2000 target embraces two sensible
objectives. The December 2000 Technical Notes establish the target
of the UK having a higher percentage of business to business/business
to customer transactions to be carried out on e-commerce networks
than in any other G7 country, by 2002. SDA 2000 contains general
commitments to implement European directives and only two further
specific targets  200,000 online contacts with the government
business website, and for the UK to be in the top 4 OECD countries
in demand for mobile data services. None of the other issues raised
in the September 1999 PIU Report and in the September 2000 annual
e-commerce Report seem to be embraced within the detailed targets.
On 13 December 2000 we heard oral evidence from the E-Minister
and acting E-Envoy, in the course of which we raised some of these
other issues, including the question of consumer confidence in
e-commerce and the removal of regulatory barriers. We recommend
that the targets for making the UK the best place in the world
to trade electronically by 2002 be extended to embrace a broader
range of the key issues raised in the Government's own recent
reports on the subject, with particular reference to consumer
protection and removal of regulation.

SR 2000 PSA target 4  Improve the economic performance of all regions measured by the trend in growth of each region's GDP per capita. JOINT TARGET WITH DETR

35. BTI's export promotion target is to be measured
by achievement of at least 15% of new-to-export firms and at least
50% of established exporters assisted improving their business
performance within 2 years, and at least 80% of firms receiving
assistance to win major overseas projects reporting that BTI's
help was a "significant factor". There is no trace of
the detailed targets from 1998 relating to specific markets or
events; nor is there any reflection of BTI expenditure on trade
missions and trade fairs. A new performance measurement system
is however still being developed to be "rolled out from the
beginning of the Spending Review period", as well as a Corporate
Plan to be prepared in spring 2001. We have recently received
the text of the Memorandum of Understanding between BTI and the
FCO and DTI.

36. Internally, BTI 

has an award scheme which recognises and rewards
best practice in commercial work at overseas posts, intended to
lead by March 2001 to a Best Practice Guide "designed to
raise the performance of the average post to that achieved by
the best";

is developing standards to apply to all Trade
Partner UK services;

will from 2001-02 benchmark its performance against
those provided by other countries;

will have wide-range monitoring procedures in
place by March 2001, and plans to evaluate one or two areas of
expenditure each year over the Spending Review period;

has set targets for interchange with the private
sector, and for FCO and DTI staff to serve in the UK and overseas
respectively.

These are matters to which we and our colleagues
on the Foreign Affairs Committee will no doubt wish to return.

1998 PSA target 10  To maintain the UK as the prime location in the EU for foreign direct investment.

SR 2000 target 11  Maintain the UK as the prime location in the EU for foreign direct investment. JOINT TARGET WITH FCO

1998 Objective BMake the most of the UK's science, engineering and technology; in particular by achieving standards of international excellence and maximising the contribution of its outputs to economic development and the quality of life.

SR 2000 Objective II  to make the most of the UK's science, engineering and technology.

1998 PSA target 5  To improve the overall international ranking of the Science and Engineering Base in terms of quality, relevance and cost-effectiveness.

SR 2000 target 5  Improve the overall international ranking of the UK's science and engineering base, as measured by international measures of quality, cost-effectiveness and relevance.

1998 PSA target 6  To increase by 50% the 1997-98 number of companies spun out from universities by 2001-02.

SR 2000 target 6  Increase the level of exploitation of technological knowledge derived from the science and engineering base, as demonstrated by a significant rise in the proportion of innovating businesses citing such sources.

1998 Objective C Create strong and competitive markets; in particular by taking action to improve the openness, efficiency and effectiveness of markets at home, in Europe and across the world, and to ensure the provision of secure, diverse and sustainable supplies of energy at competitive prices.

Objective D Develop a fair and effective legal and regulatory framework; in particular by improving and enforcing a framework for commercial activity which encourages enterprise and avoids unnecessary burdens on business, while providing a fair deal for consumers and by developing a framework for employers and employees which promotes a skilled and flexible labour market founded on principles of partnership....

SR 2000 PSA target 8  Ensure competitive gas and electricity prices in the lower half of the EU/G7 basket, while achieving security of supply and social and environmental objectives.SR 2000 PSA target 9  Improve the environment and the sustainable use of natural resources, including by reducing greenhouse gas emissions by 12.5% from 1990 levels and moving towards a 20% reduction in CO2 emissions by 2010. JOINT TARGET WITH DETR

43. The seven measures used in relation to the
1998 target on energy, while comprehensible and objective, had
little to do with the role of the department. The new targets
include achievement of the targets and outcomes set out in the
department's October 2000 Sustainable Development Strategy and
Action Plan, and include a measurable target directed to fuel
poverty. This should ensure that targets are more closely aligned
to the difference the DTI can and we hope does make in energy
policy, so that the success or otherwise of its performance can
be measured.The target on achieving competitive gas and
electricity prices should in our view be explicitly taken to refer
to prices for commercial users.

1998 PSA target 12  To improve UK performance in transposition of EU Single Market measures to enable 98% of measures to have been transposed into UK law by end 2000.

SR 2000 PSA target 7  Have the most effective competition regime in the OECD, as measured by peer review, and achieve a fairer deal for consumers, as measured by the level of consumer knowledge and understanding of rights and sources of information.